Young Adults in the US Spend Less on Video Games

Money spent by young adults in the United States on video games has recorded a significant drop, one of the results of the current economic problems they face. According to The Wall Street Journal, citing numbers from Circana, the money spent by young adults aged 18 to 24 in the U.S. fell by 13% when comparing the first four months of 2025 to the same period in 2024. In video games, this drop is close to 25%, nearly double the overall average. The decrease in spending on video game products among young adults was nearly 25% in a four-week span in April compared to the same period last year. Other categories also saw dramatic drops: Accessories (down 18%), technology (down 14%), and furniture (down 12%). All categories combined, the 18-24 age group spent around 13% less than last year. While players aged 25 to 34 also recorded a minor drop, inferior to that for players over 35, the drop among players aged 18 to 24 is drastic, reflecting the current challenging economic times during which many graduates cannot find work. These young adults face far more severe problems than merely lacking money for games or consoles; they risk their future as they may not even be able to save for a better life, and can’t even rely on the possibility of buying a new game to escape life’s troubles.

Young adults are cutting back on night outings, restaurant and bar visits, and even monthly subscriptions they previously subscribed to, as price hikes and economic insecurity instill fear about their long-term future. This decrease is not reflected among older cohorts, whose spending has been mostly stable year-over-year. The economic context could be driving young adults to pull back; a tighter labor market, increased economic uncertainty, and student-loan payments restarting all may be contributing to an environment hostile to the spending habits of 18- to 24-year-olds in particular. This could potentially be a warning indicator for the games industry, which has already been struggling under multiple rounds of layoffs and a reduction in revenue growth. If they have an industry-wide impact, these spending cuts may disproportionately affect certain types of games; free-to-play behemoths like Roblox have been more popular than ever, even while conventional game developers have struggled.